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Cameroon : Indicators

2010 > Fiscal regime: tax collection and redistribution

Fiscal regime: tax collection and redistribution

To what extent does the law provide for taxes, royalties, or other any other benefits to be collected from permit holders and given to affected communities? Are any laws or regulations regarding this implemented effectively?

Section 68 (2) of the Forest Law states “For the development of neighbouring communities of forests under exploitation, part of the proceeds from the sale of forest products shall be reserved for the said communities under conditions laid down by decree”. The sharing mechanism of these incomes generated by forests in Cameroon is well-defined in legal provisions which have been recently updated. However, the implementation of these texts has not been effective due to vested interests of small groups and traffic of influence from bigwigs of the current political regime. Most of the time local populations receive only part of their share and there is no accounting and accountability to verify due amounts.

Is there a system of tax / royalties redistribution?

The joint decree No 0520/MINADT/MINFI/MINFOF of 28th July 2010 provides a system of sharing benefits and taxes generated from all forest activities. This legal instrument replaces the former joint decree No 0122/MINEFI/MINAT of 29th April 1998. This regulation applies to 7 different types of tax or benefits: (1) forest royalties, (2) contribution to the realisation of social and economic amenities, (3) revenues accrued from the exploitation of council forests, (4) tax on products collected with small titles (AEB & ARB), (5) revenues generated by the exploitation of community forests, (6) hunting taxes, and (7) all other revenues generated by forests. For forest royalties, the scheme is as follows: 50% for the State, 20% for local council, 20% for FEICOM and 10% for local communities. Read more...

Is the system of tax / royalties redistribution effective in meeting any legal obligations?

The joint decree No 0520/MINADT/MINFI/MINFOF of 28th July 2010 provides guidelines for using forest taxes and royalties by councils and local communities’. It sets up management committees which are accountable to council members and local communities. Quotas for expenditures for investments (80 to 90%) and functioning (mainly salaries, 10 to 20%) are also given. In practice, this does not effectively take place as planned. Some difficulties encountered in the management of these funds are: 1- Poor management capacities of council members and local populations, 2- Embezzlements of funds by some powerful elites, and 3- poor information diffusion and dissemination. Read more...

Is there a stakeholder consultation process regarding the use of community funds?

Local populations are aware of the tax distribution system and the amount deserved to them but the issue is that they do not have a check and balance system to know if their share was appropriately calculated. In regard to the use of these funds, there is a committee provided for by law that is constituted of representatives of local communities who decide on investment options and alternatives listed in the joint decree – see Article 16 of the joint decree (drugs purchase, roads and bridges rehabilitation, reforestation...). In practice, the decision-making process on the use of the funds does not include communities. Read more...

Are figures for collection and distribution published?

The concerned authorities publish the amount of taxes due to each community or councils. Per regulation, this is to be done three times per year. But in reality, it is infrequently published (sometimes once a year) and mayors complain that the published amount is different from what they perceive leading to conflicts amongst them and local communities. Read more...

Is there a system of social obligations, where concession holders have to provide benefits directly to affected communities?

Forest concession contracts are annexed with “cahiers de charges” which specify obligations of loggers with regards to contribution for realisation of social and economic amenities. Likewise during the elaboration of forest management plans, mutual agreements are to be reached between logging companies and neighbouring villages for construction of social infrastructures. However, mostly the legal obligations are not met and logging companies fail to provide the services as stated in the agreements. Since local communities do not have access to “cahiers de charges” (which must be negotiated with, and signed by the concerned communities) and other documents, their rights are abused. It is finally reported that local communities receive cash (1000 FCFA/m3) and goods (food, agricultural inputs...) within the frame of Sales of Standing Volumes. Note that for logging companies engaged in certification, they have more social obligations to follow but it is voluntary. Read more...

Is there a stakeholder consultation process?

In some cases, local populations have been consulted by logging companies prior to the elaboration of social obligations. But, in most cases the logging companies realise what is opportune to them without consultation and consent of local populations. Read more...

Is information on social obligations published?

Information on social obligations are not public but are not confidential either. They are found in “cahiers de charges” supposed to be found at the annexes of forest management plans and since local populations do not have access to these documents, their rights are often violated by logging companies who simply ignore their legal social duties. Read more...
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